Light olefins
Overview
The global light olefins market is made up of ethylene and propylene monomers. These product markets can be affected by a great many factors.
Ethylene is the most widely used commodity chemical and is produced globally in all major regions. It is converted into many products used in daily life like plastic packaging, durable goods, hygiene products and other consumer items. The ethylene market is driven primarily by regions of low production cost and regions of high demand growth. Polyethylene, ethylene’s largest derivative, represents about 65pc of global ethylene demand. Anyone involved in the ethylene industry – directly or indirectly – needs market and pricing insight to anticipate supply shortages and potential swings in pricing.
Propylene is the second most widely used commodity chemical and is produced globally in all major regions. Propylene is a volatile commodity because of its predominantly co-product nature and unpredictable supply, but recently the industry has been trending to more on-purpose production. It is converted into many products used in daily life like plastic packaging, durable goods, automotive products, and woven fabrics. Polypropylene, propylene ’s largest derivative, represents about 70pc of global propylene demand. Anyone involved in the propylene industry – directly or indirectly – needs market and pricing insight to anticipate supply shortages and potential swings in pricing.
Our light olefins experts will help you determine what trends to track and how to stay competitive in today’s ever-changing global market.
Latest light olefins news
Browse the latest market moving news on the global light olefins industry.
EU launches s-PVC anti-dumping investigation
EU launches s-PVC anti-dumping investigation
London, 24 September (Argus) — The European Commission has begun an anti-dumping investigation into imports of suspension PVC (s-PVC) into the EU from China, South Korea, Taiwan and Mexico. The move follows anti-dumping duties imposed by the commission on PVC imports from the US and Egypt in 2024 . The investigation of dumping and injury will cover the period of 1 April 2025 to 31 March 2026. Eurostat data show PVC imports from the countries under investigation totalled 593,715t during that period. The announcement comes after the UK launched an anti-dumping investigation into s-PVC imports from China, Mexico and South Korea in August. The commission said pre-disclosure of any provisional measures is likely on 23 April 2027, while definitive measures are expected to be disclosed on 20 November 2027. Argus assessed the PVC import price on a cif Europe basis between €775-825/t last week. By George Barsted Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US PVC exports continue decline in July
US PVC exports continue decline in July
Houston, 3 September (Argus) — US polyvinyl chloride (PVC) exports continued to lag behind year-earlier levels in July, driven by lower shipments to Turkey, Mexico, India and Vietnam. PVC exports in July dropped by 12pc from a year earlier to 235,376 metric tonnes (t), extending a prolonged contraction in US shipments this year. Exports have been lower on the year in every month this year through July, with total exports in the seven-month period dropping by 9pc to 1.86mn t. Declining US exports stem from higher trade barriers with key partners. Mexico's Ministry of Economy imposed anti-dumping duties on PVC imports from the US earlier this year, pressuring July deliveries 57pc lower than a year earlier to 12,237t. Exports to Vietnam in July fell on the year by 46pc to 23,840t after Vietnamese importers shifted purchases to Chinese suppliers earlier in the year. Still, July exports to Vietnam surged five-fold from June after high freight costs from China gave US PVC suppliers a competitive advantage. US PVC exports to Turkey also remained down in July, dropping by 33pc from a year earlier to 16,000t. Turkey has historically been one of the US' largest trading partners, accounting for 11pc of US PVC exports last year. Deliveries to India fell to 9,100t in July, down by 25pc from the same month last year. Still, Indian importers have been a key demand source for US exporters during the second half of the year, as elevated China freight costs funnel demand to US suppliers. By Adriana Alfaro Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US/Canada August PP contracts decline by 4.5¢/lb
US/Canada August PP contracts decline by 4.5¢/lb
Houston, 3 September (Argus) — August contracts in the US/Canada polypropylene (PP) market declined on average by 4.5¢/lb, including a 1.5¢/lb decline in August polymer-grade propylene (PGP) contracts as well as around 3¢/lb of PP margin compression. For most PP contracts any increase or decrease in PGP contracts is automatically passed along to PP customers. Anything in addition to the feedstock-related increase is considered a margin increase or decrease. PP producers were able to push through between 4-7¢/lb of margin increases to customers in April, due to supply concerns caused by global disruptions related to the US war with Iran. However, buyers have been pressing for at least some of that margin increase to come out since July, arguing that the feared supply constraints used to justify the increases never materialized. Initially, there had been an expectation that US and Canadian producers would significantly increase export volumes to help fill in supply gaps caused by outages in the Middle East. But global prices never rose enough to make PP exports out of North America attractive to producers. With material not moving offshore, supply in the North American market remained balanced-to-long. Spot domestic prices declined over July and August, creating pressure for contract margins to fall in August, buyers said. "I'm buying at back to almost January numbers on the spot side," said one buyer, who said the decline in spot prices helped to support the margin contraction. Buyers said they will push for the remainder of the April margin increase to come out by the year in annual contract negotiations. But producers said they believe some of the margin increase will need to stick in order to support higher operating rates. "We have seen additive costs go up, transportation costs go up," said a US producer. "We need to keep some [margin]." PP demand in North America has been steady. The market is still showing year-to-date growth of around 5.8pc through July, according to data from the American Chemistry Council. Market participants attribute the growth to a combination of fewer resin imports and fewer plastics finished goods coming into the US due to both new tariffs and supply disruptions caused by the US-Iran war. There are some concerns about future demand for certain plastics due to new tariffs announced by the US and Canada. While resin itself is not on the list of tariffed items, certain plastics items are, which could limit some demand at the converter level on both sides of the US/Canada border. So far, the situation has not resulted in any cancelled resin orders, according to one US PP producer. But buyers and producers are keeping a close eye on any new developments. By Michelle Klump Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
SE Asia faces HDPE supply crunch on heavy turnaround
SE Asia faces HDPE supply crunch on heavy turnaround
Singapore, 2 September (Argus) — Southeast Asian high-density polyethylene (HDPE) supply has remained tight against a backdrop of heavy scheduled plant maintenances, prompting higher Chinese-origin HDPE offers to emerge in the region. Major Malaysian polyolefins firm Lotte Titan shut its 220,000 t/yr linear low-density PE- high density PE (LLDPE-HDPE) swing unit and its 115,000 t/yr HDPE unit at Pasir Gudang in late August for planned maintenance, according to sources close to the company. The 220,000 t/yr PE-1 unit, which only produces HDPE, will remain offline for about a month. The restart schedule for the 115,000 t/yr PE-3 HDPE unit is uncertain, while the company's LDPE PE-2 unit is operating at 60-65pc. Fellow Malaysian producer Petronas Chemicals restarted subsidiary Petlin Malaysia's 255,000 t/yr LDPE unit at Kerteh in late August, after taking it offline in July. The company's 250,000 t/yr LLDPE-HDPE swing unit has also been partially idled, with 125,000 t/yr of HDPE capacity offline, but the restart date could not be confirmed. Elsewhere in the region, state-owned Thai petrochemical producer PTT Global Chemical (PTTGC) took its 300,000 t/yr HDPE line at Map Ta Phut offline in late August because of limited ethylene feedstock from its cracker, and is expected to restart on 9 September, sources close to the company said. PTTGC's polyolefins downstream assets include a 300,000 t/yr LDPE plant, two 400,000 t/yr LLDPE-HDPE swing units and HDPE units with a combined capacity of 850,000 t/yr. The maintenance plans are expected to reduce southeast Asian HDPE supply, with a combined 760,000 t/yr of nameplate capacity offline in early September. Coupled with rising crude and naphtha values, opportunistic Chinese sellers have started raising HDPE offers into southeast Asia. Sporadic Chinese-origin HDPE film offers emerged at $1,285/t cif Malaysia this week, up from $1,270/t cif Malaysia a week earlier. Argus assessed duty-free HDPE film prices at $1,200-1,325/t cfr southeast Asia on 28 August, stable from the previous week. By Zong Ming Shin Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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